Game theory was initially evolved
to investigate different strategic
situations with competing players [1]}. Of late, the concept of game
theory is being applied to
different statistical events to
measure the success rate when one’s
success depends on the choice of the
other agents. The game of Prisoners’
dilemma (see e.g., [2]}) is a popular
example where two non-communicating
(or non-interacting) agents choose
their actions from two possible
choices. It is a two-person, two-choice,
one-shot (one time decision) game. The
Nash equilibrium (see e.g., [3]})
solution employs the strategy, where
the other player can not gain from any
of the choices, and both the players
necessarily defect. However, this is
not a Pareto optimal solution (see
e.g., [4]}), where no change in the
decision can lead to a gain for one
player without any loss of the other.
This problem has been used to model
many real life problems like auction
bidding, arms races, oligopoly pricing,
political bargaining, salesman effort
etc.
